Stagecoach bemoans traffic congestion amid ‘disappointing’ London losses
Stagecoach has hit out at congestion and roadworks in London this morning, as half-year losses in its bus segment in the capital mounted.
Stagecoach has hit out at traffic congestion and roadworks in London this morning, as half-year losses in its bus segment in the capital mounted.
Losses in its London bus business more than tripled to £5.8m and the transport operator described the performance as “disappointing,” noting upward wage pressure, increased staff turnover and staff shortages.
Stagecoach said roadworks and traffic congestion had been a “continuing challenge” for operators in the London market and was “adversely affecting service delivery.”
A January report from the traffic data supplier Inrix found London roads were the most congested in the world, with more time being lost to traffic jams now than before the pandemic. It marked the second year in a row the capital topped the index, although it does not cover countries like India and China.
Britain’s biggest bus and coach operator, which runs in the capital under contracts provided by Transport for London (TfL), insisted profitability would improve as they address “labour market challenges [and] benefit from lagged inflationary increases in contract revenues.” It added it was in ongoing engagement with TfL over congestion and roadworks issues.
In March last year, Stagecoach U-turned on a proposed £1.9bn merger with National Express, opting instead for a £595m takeover by the German infrastructure fund DWS.
London revenues rose 16.5 per cent to £179.8m, while its wider UK bus business saw revenues up 15.1 per cent to £584.7m, driven by strong demand.
Strong growth in regional passenger demand led to a 5.3 per cent increase in regional bus journeys over the six months ending 28 October 2023, in part aided by the government’s £2 fare cap policy.
Pre-tax profits for the business as a whole came in at £41.2m, up from 36.6m year-on-year. Its outlook for the full year ending 27 April 2024, remains unchanged.
Stagecoach employs around 23,000 people, operating 8,300 buses, coaches and trams across England, Scotland and Wales.
